FSS published a notice with proposal regarding the enactment and revision of its regulation related to the capital treatment for short-term simple, transparent, and comparable (STC) securitizations. The consultation period ended on September 18, 2019.
The purpose of the stipulated provisions and revisions is to:
- Encourage a bank to strengthen responsible autonomous risk management through the approval, post-management procedures, and improvement of risk assessment criteria under the Internal Grade Act, which applies to the release of risk-weighted assets.
- Rationalize capital regulations, such as allowing credit risk reduction for unrecovered domestic bonds secured with superior bonds
- Reflect the criteria for the handling of regulatory capital for the BCBS-published standard on capital treatment for short-term STC securitizations
- Low risk-weight application for exposure, in which the underlying asset is superior and homogeneous and the relevant information is transparent and consistently managed and consistently.
Comment Due Date: September 18, 2019
Keywords: Asia Pacific, Korea, Banking, Securitization Framework, Regulatory Capital, STC Securitization, Risk-Weighted Assets, FSS
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.